NikeNKE -0.37%68 Pretax Margin % is 5.76% as of Feb. 2026, which is 55% below its 10-year median of 12.66. GuruFocus rates NKE with a GF Score™ of 68/100 and a GF Value™ of $74.89 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,042 Manufacturing - Apparel & Accessories companies, Nike ranks better than 63.05% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Nike's Pre-Tax Income for the
three
months ended in Feb. 2026 was $650 Mil. Nike's Revenue for the
three
months ended in Feb. 2026 was $11,279 Mil. Therefore, Nike's pretax margin for the quarter that ended in Feb. 2026 was 5.76%.
The historical rank and industry rank for Nike's Pretax Margin % or its related term are showing as below:
NKE'
s Pretax Margin % Range Over the Past 10 Years
Min: 6.21 Med: 12.66 Max: 14.96
Current: 6.21
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Nike Pretax Margin % Related Terms
Nike Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Nike's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NKE vs DECK, ONON, BIRK: Pretax Margin % Comparison
For the Footwear & Accessories subindustry, Nike's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nike Pretax Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Nike's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nike (NKE) has a Pretax Margin % of 5.76% as of Feb. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nike and its competitors. This is 55% below median its historical median of 12.66. Over the past decade, Nike's Pretax Margin % has ranged from 6.21 to 14.96. According to the industry distribution chart, Nike ranks #385 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 36.9%.
Is Nike's Pretax Margin % too high?
Nike's current Pretax Margin % of 5.76% is 55% below median its 10-year median of 12.66. Over the past 10 years, this metric has ranged from a low of 6.21 to a high of 14.96. The Manufacturing - Apparel & Accessories industry median Pretax Margin % is 3.53. Nike's value of 5.76% is 63.4% above this industry median. Based on the distribution chart, Nike ranks #385 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Nike has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nike's Pretax Margin % compare to DECK and ONON?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Nike ranks #385 out of 1042 companies for Pretax Margin %. This puts Nike in the upper half of its industry. The industry median Pretax Margin % is 3.53. Nike's value of 5.76% is 63.4% above this benchmark. Historically, Nike's own Pretax Margin % has ranged from 6.21 to 14.96 over the past decade. While the company's 10-year median is 12.66 vs. the industry median of 3.53, Nike has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Manufacturing - Apparel & Accessories company?
The median Pretax Margin % among Manufacturing - Apparel & Accessories companies is 3.53, based on 1,042 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nike's current Pretax Margin % of 5.76% is 63.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Nike and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nike's current Pretax Margin % is 5.76%, which is 55% below median its own 10-year median of 12.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nike stock overvalued right now?
Based on GuruFocus' analysis, Nike (NKE) is currently considered Possible Value Trap. The stock's GF Value™ is $74.89, compared to a current price of $40.75 — trading 45.6% below its estimated fair value. The current Pretax Margin % is 5.76%, which is 55% below median its 10-year median of 12.66 and 63.4% above the Manufacturing - Apparel & Accessories industry median of 3.53. Nike's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Nike (NKE), the current Pretax Margin % is 5.76% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nike (NKE) Overvalued in 2026?
Based on GuruFocus' analysis, Nike stock appears to be undervalued.
The current stock price of $40.75 is trading 45.6% below its estimated GF Value™ of $74.89.
GuruFocus considers Nike to be Possible Value Trap.
Key valuation signals for NKE:
Pretax Margin %: 5.76% (55% below median its 10-year median of 12.66)
GF Value™: $74.89 vs. price of $40.75 (45.6% below fair value)
Industry Position: 63.4% above the Manufacturing - Apparel & Accessories median (#385 of 1042)
No single metric tells the full story. See the NKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nike is the largest athletic footwear and apparel brand in the world. Footwear generates about two-thirds of its sales. Key performance footwear categories include basketball, running, and football (soccer). Its brands include Nike, Jordan (premium athletic footwear and clothing), NikeSkims (women's athleisure), and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores (including about 5,500 in China), and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
68GF Score
Get the complete analysis for NKE
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NKE has been successfully added to your 
